A DfT spokeswoman said: "Following the decision of Seaborne Freight's backer, Arklow Shipping, to step back from the deal, it became clear Seaborne would not reach its contractual requirements with the government. We have therefore decided to terminate our agreement.

"The government is already in advanced talks with a number of companies to secure additional freight capacity - including through the port of Ramsgate - in the event of a no-deal Brexit."

Image:Andy McDonald described the Seaborne contract as 'ridiculous'

The DfT said no taxpayer money had been transferred to the company before the contract was terminated.

Mr McDonald added: "This contract was never going to work but this secretary of state, true to form, blunders from one disaster to another.

"Whilst Theresa May needs the few friends she has right now, we cannot have this incompetent transport secretary carry on heaping humiliation after humiliation on our country."

Mick Cash, general secretary of the Rail, Maritime and Transport (RMT) union, said: "The whole exercise is a complete and utter shambles with the government ignoring union calls on what needs to happen.

"It's time for Chris Grayling to stop attacking RMT and start listening to people who actually know what they are talking about instead of the chancers selling him a pile of old rope they don't even own."